DoD Awards $120M Lockheed Martin Contract for Industrial Engineering Services, Sole-Sourced
Contract Overview
Contract Amount: $120,143,721 ($120.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2012-05-03
End Date: 2021-09-30
Contract Duration: 3,437 days
Daily Burn Rate: $35.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: INDUSTRIAL ENGINEERING SERVICES CONTRACT
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $120.1 million to LOCKHEED MARTIN CORPORATION for work described as: INDUSTRIAL ENGINEERING SERVICES CONTRACT Key points: 1. Significant contract value of over $120 million. 2. Sole-source award to Lockheed Martin Corporation. 3. Long contract duration from 2012 to 2021. 4. Services fall under Engineering Services (NAICS 541330).
Value Assessment
Rating: questionable
The contract value is substantial, but without competitive bidding, it's difficult to assess if the pricing is optimal. The Cost Plus Fixed Fee (CPFF) structure can incentivize cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for a $120M contract raises concerns about potential overspending of taxpayer funds.
Public Impact
Taxpayers may have paid a premium due to the absence of competitive bidding. The long duration suggests ongoing need but also a missed opportunity for re-evaluation. Dependence on a single contractor for critical engineering services could pose a risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- Lack of small business participation indicated
Positive Signals
- Established contractor (Lockheed Martin)
- Long-term service provision
Sector Analysis
Industrial engineering services are crucial for optimizing manufacturing and operational processes. A $120M contract over nine years suggests a significant, long-term requirement within the Department of the Army.
Small Business Impact
The data indicates that small businesses were not involved in this contract, as the 'sb' field is false. This represents a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this large contract warrants scrutiny to ensure fair pricing and effective service delivery. Oversight should focus on the justification for non-competition and cost controls.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competition.
- Cost-plus contract type may incentivize higher spending.
- Long contract duration (9 years) without clear re-competition.
- No indication of small business participation.
- Potential for cost overruns due to CPFF structure.
Tags
engineering-services, department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $120.1 million to LOCKHEED MARTIN CORPORATION. INDUSTRIAL ENGINEERING SERVICES CONTRACT
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $120.1 million.
What is the period of performance?
Start: 2012-05-03. End: 2021-09-30.
What was the justification for awarding this $120M contract on a sole-source basis?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services, often due to unique capabilities, urgent needs, or specific technical requirements. Without the specific justification documentation, it's impossible to confirm the validity of this decision, but it inherently bypasses the competitive process designed to ensure best value for the government.
How did the Cost Plus Fixed Fee (CPFF) structure impact the final cost compared to a fixed-price contract?
CPFF contracts allow the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. While it can be suitable for research and development or when cost uncertainties are high, it shifts cost risk to the government. This structure can incentivize higher spending as the contractor's profit is fixed, potentially leading to less cost-consciousness than in fixed-price contracts.
What specific industrial engineering services were provided under this contract, and were they critical to Army operations?
The contract falls under NAICS code 541330 (Engineering Services), which is broad. Specific services could range from process optimization, facility design, logistics analysis, to systems integration. Given the substantial value and duration, these services were likely critical to supporting major Army programs or infrastructure, but the exact nature requires further investigation into contract line items and performance reports.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W31P4Q11R0087
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 1701 W MARSHALL DR, GRAND PRAIRIE, TX, 75051
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $122,128,723
Exercised Options: $122,128,723
Current Obligation: $120,143,721
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-05-03
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2025-04-22
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